Tokio Marine Holdings might have old roots, but it still knows how to learn new tricks. Japan's oldest property/casualty insurance company, the firm has one of the largest insurance sales networks in Japan and has expanded its insurance operations to about 40 additional countries in Asia, Europe, and North America. Through Tokio Marine & Nichido Fire (TMNF), Nisshin Fire, Philadelphia Insurance Companies, Kiln, and other subsidiaries, Tokio Marine Holdings provides marine, property/casualty, personal accident, fire, auto, and life insurance as well as reinsurance. It also offers asset management, pension plans, and other services.
Acquisitions and ventures overseas have been a main part of the company's strategy for growth as it aspires to become a top player in the global insurance industry. Tokio Marine is especially seeking growth in the European and North American markets. Its TMNF subsidiary acquired UK firm Kiln, a top Lloyd's of London property/casualty insurer, and its subsidiaries in 2008 for about $900 million.
To expand its niche property/casualty offerings in the US, the company spent $4.7 billion to acquire Philadelphia Insurance Companies (then named Philadelphia Consolidated Holding) later that year. Philadelphia Insurance Companies specializes in non-standard and specialty property/casualty and professional liability insurance. In 2011 TMNF bought up CNA Financial Corporation's 50% interest in First Insurance Company of Hawaii, the state's largest property/casualty insurance firm. TMNF had held the other 50% of the company since 1999 and buying up the balance of First Insurance Company of Hawaii sped up its US expansion efforts.
In mid-2012 Tokio Marine made another large US acquisition, this time of property/casualty and specialty life insurer Delphi Financial Group. The $2.7 billion acquisition enhanced Tokio Marine's property/casualty offerings by adding Safety National Casualty's workers' compensation offerings and Matrix Absence Management's disability offerings; it will brought the company into the US life insurance market through the addition of Delphi's Reliance Standard Life unit, which provides group employee benefits and individual annuities.
Previous acquisitions expanded Tokio Marine's operations in Singapore, Malaysia, and the domestic Japanese market. Tokio Marine partnered with Alinma Bank in 2010 to establish an insurance firm in Saudi Arabia, a largely untapped market for the company. The two companies will hold equal stakes in the new company, which will sell life and nonlife insurance products as well as "takaful," a type of insurance tailored to conform with Islamic law. Other potential countries targeted for growth efforts include China and India.
The company changed its name from Millea Holdings to Tokio Marine Holdings in 2008. The move aimed to align the company's operations with the main insurance subsidiary, Tokio Marine & Nichido Samuel, which was created through the merger of Tokio Marine and Fire (Japan's oldest insurer founded in 1879) and Nichido Fire and Marine in 2002. – less